Shell’s profitability from fracking can be questioned / Shells lönsamhet från fracking kan ifrågasättas

We need to ask, with the declining returns we’re seeing, when will the oil majors be unprofitable / insolvent…?

Aleklett's Energy Mix

Activity has been low at my Aleklett’s Energy Mix blog during the summer. However, now it is time to get busy again. Oil & Gas Journal is one of the journals that I regularly follow and today their daily reportage includes an article with the title,” Shell reshuffles US shale assets in two major deals”. They are selling their shale gas assets including, among others, their Haynesville and Pinedale assets for $2.1 billion. They are also swapping a few rights and selling production for a net value of $925 million. The fact that they are reinforcing their cashflow by more than $3 billion indicates that they have financial problems elsewhere. Rumors say that it is their losses in Eagle Ford that are causing them to restructure their gas activities. At the moment we are studying Eagle Ford and we see that the profitability for individual wells is low. One can…

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